'Canada Is Not for Sale': Trump's 51st State Threat Costs America Billions as Canadians Snub US

Canadian spending on trips to the United States fell sharply in 2025, as cross-border travel plummeted by 25 per cent. A newly released Canadian government report indicates that visitors spent C$3.3 billion (£1.76 billion) less in the U.S. over the past year, marking a significant shift in North American tourism.

For context, the decline in visits followed the implementation of heavy tariffs on Canadian-made goods, ramped-up immigration enforcement, and rhetoric from President Donald Trump repeatedly threatening to absorb the sovereign nation as America's '51st state.'

'Following the change in the U.S. administration in early 2025 and the implementation of America First policies, Canadian travel sentiment shifted abruptly,' the official report noted.

Canadian Tourism Drops Sharply Amid US Tensions

Total spending by Canadians dropped to C$18.8 billion ($12.8 billion), down from C$22.1 billion ($15.6 billion) the previous year. This translates to a substantial C$3.3 billion ($2.8 billion) shortfall for the American travel sector. The report highlights that return trips fell year over year for 11 consecutive months in 2025.

Outside of the locked-down pandemic era, this represents the longest sustained drop in cross-border travel since official records began in 1972. Instead of heading south, data shows Canadians opted for roughly five million more domestic trips within their own borders. They also booked 1.3 million additional holidays overseas.

University Studies Confirm Drop in US Visits

Academic research from May mirrors the government findings, highlighting specific regional impacts. A University of Toronto study tracked a 42 per cent crash in Canadian visits to major American cities, including San Francisco, Houston, and Grand Rapids, during the president's second term.

Las Vegas has also seen a noticeable shift. Following the imposition of strict tariffs last year, visits from Canadians to the gambling capital fell by 17 per cent. According to a Politico report, this decline contributed to a 7.5 per cent overall drop in the city's tourism.

International Tourists Choose Destinations Outside the US

The shift in travel habits extends beyond North America. A report from May revealed the United States welcomed roughly four million fewer international visitors in 2025 compared to the previous year. This translates to a 5.5 per cent decline in overseas tourism and a loss exceeding $8 billion (£6.02 billion) in foreign visitor spending.

While the largest decline came from Canada, tourist numbers also dropped from Germany, India, France, Australia, Chile, and China. Aside from the sudden collapse in travel during the COVID-19 pandemic, it represents the sharpest annual drop in international tourism in roughly two decades.

What makes this downturn stand out is that the rest of the world was actually travelling more. Last year, roughly 80 million additional tourists decided to pack their bags and head overseas, yet a growing number of them intentionally bypassed American ports of entry.

Security Experts Warn of US Reputation Damage

Security experts view this as a potential symptom of a deeper reputational shift. Juliette Kayyem, faculty chair of the Homeland Security Project at the Harvard Kennedy School, suggested to CNN that changing travel habits reflect how the nation is perceived abroad.

'We used to be a country that others wanted to emulate. That narrative no longer exists,' Kayyem said. 'The long-term harm is that the world will not know America... the narrative of the United States is now a country that is at best, not to be respected, and at worst, a democracy that is floundering.'

The White House has not yet issued a response regarding the tourism decline.